The National Council of Business (CONEP) has proposed a 50% reduction in the tariffs prior to the entrance into effect of the GATT tariffs valorization system. The application of GATT tariffs code will increase taxable values of imports. This could bring a television set that sold for RD$5,000 to sell for RD$9,000 if the tariffs are not revised downward, according to a report in El Caribe. Vicente Sanchez Baret, director of Customs said that they are preparing to implement the GATT Valorization System as of 1 July on schedule. He promised Customs officers will no longer be able to set the values for taxation. But Antonio Espin, president of a large appliance store, doubts the Customs Department is ready for the application of the GATT code. "In reality, nobody knows which will be the new organization of the Customs. GATT requires an administrative and operational reorganization of the Customs Department that should already have installed and at this point be operating pilot programs," he told El Caribe. "The director of Customs may have the best of intentions, but not only good intentions are needed, they have to be prepared with an agile organization, that is dynamic and a new structure with a new philosophy and new professionals," he said. Antonio Espin, who is also president of the Herrera Industrial Association, said that to avoid a second inflationary outbreak a reduction in tariffs is necessary to reduce significantly the interest in contraband. He explained that as tariffs are reduced contraband becomes less attractive. But if the adjustments in tariffs are not made there will be a general increase in prices.
